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EMBRACING CYCLICITY TO GROW THE LEADING DIVERSIFIED MINING ROYALTY COMPANY
ANNUAL and SPECIAL MEETING SEPTEMBER 12, 2016
FORWARD LOOKING STATEMENTS
This document includes certain statements that constitute “forward‐looking statements” and “forward-lookinginformation” within the meaning of applicable securities laws (collectively, “forward‐looking statements”).Forward-looking statements include statements regarding Altius Minerals Corporation’s (“Altius”) intent, or thebeliefs or current expectations of Altius’ officers and directors. Such forward-looking statements are typicallyidentified by words such as “believe”, “anticipate”, “estimate”, “project”, “intend”, “expect”, “may”, “will”, “plan”,“should”, “would”, “contemplate”, “possible”, “attempts”, “seeks” and similar expressions. Forward‐lookingstatements may relate to future outlook and anticipated events or results.
By their very nature, forward‐looking statements involve numerous assumptions, inherent risks and uncertainties,both general and specific, and the risk that predictions and other forward‐looking statements will not prove to beaccurate. Do not unduly rely on forward‐looking statements, as a number of important factors, many of which arebeyond Altius’ control, could cause actual results to differ materially from the estimates and intentions expressedin such forward‐looking statements.
Forward‐looking statements speak only as of the date those statements are made. Except as required byapplicable law, Altius does not assume any obligation to update, or to publicly announce the results of any changeto, any forward‐looking statement contained herein to reflect actual results, future events or developments,changes in assumptions or changes in other factors affecting the forward‐looking statements.
3
CAPITAL STRUCTURE
Market Facts As of August 31, 2016
Shares Issued 43,425,624
Options 274,933
Warrants (@$14) 400,000
Fully Diluted 44,100,557
Annual Dividend $0.12 per share
Net Debt* ~$46 million
Available Liquidity ~$60 million
* Net debt calculated using actual debt less cash and public equities market value
$0
$20
$40
2014 2015 2016 2017 (f)
Royalty Growth
Revenue
EBITDA
Management estimates (Please see Forward looking Statements at beginning of this presentation).Revenue figures are royalty based only and do not include project generation business equity or project sales.
4
FINANCIAL RESULTS – EARNINGS vs. FREE CASH FLOW
Management estimates (Please see Forward looking Statements at beginning of this presentation).
Free cash flow is derived from operating cash, minus generative and exploration expenditures plus cash receipts from joint ventures
-$40
-$20
$0
$20
2014 2015 2016 2017 (f)
Reported net earnings
Free cash flow
Our net earnings have been clouded with non-cash writedowns, particularly of our equity holding in Alderon Iron Ore (which was originally obtained in exchange for a mineral property rather than a cash investment)
5
FREE CASH FLOW
$0
$20
$40
2014 2015 2016 2017 (f)
Investment proceeds
Free cash flow
Management estimates (Please see Forward looking Statements at beginning of this presentation).Free cash flow is derived from operating cash, generative and exploration expenditures and cash receipts from joint venturesInvestment proceeds for 2017 is Q1 only
Steady growth in free cash flow from our royalty portfolio, combined with investment proceeds provide us with ample cash to service our debt and other capital requirements
6
FINANCIAL RESULTS – CASH FLOW
$0
$10
$20
$30
$40
$0
$50
$100
2014 (SherrittRoyalties)
2015 2016 2016 (ChapadaStream)
2017 (f)
Debt minus cash
EBITDA
Management estimates (please see forward looking statements at beginning of this presentation).
Since April 2014 we’ve repaid in excess of $90 million in debt and paid $7 million in dividends using investment proceeds and operating cash flow
ALTIUS EMBRACES THE FULL COMMODITY INVESTMENT CYCLE
Bear Market
• Acquire long-life, diversified mining royalties
• Accumulate exploration lands
7
Down-Cycle
Up-Cycle
Bull Market
• Harvest royalty income growth, repay acquisition borrowing
• Create value from exploration lands while creating new royalties
COUNTER-CYCLICAL DISCIPLINE
8
Cycle 1 Cycle 2 (“SuperCycle”)
Voisey’s Bay777
Sherritt (11)
Chapada
Altius IPO
$0.20 per share
Royalty / stream acquisition
Cycle 3
Project spin-outs
10
Diversified Mining Market Capitalizations
Top
5 M
ine
rsTo
p 5
Ro
yalt
y /
Stre
am C
om
pan
ies
(US$bn)
$229
<$2bn
0.5% of Top 5 Miner Value
WHY DIVERSIFIED MINING ROYALTIES?
Royalty investment has emerged as a mainstream segment within the precious
metals sector over the past decade
We believe that this segment is even more fundamentally attractive when applied to the
diversified mining sector(base metals, bulk minerals, fertilizers)
Generally longer mine lives and greater brownfield expansion potential mean better long-term royalty option value
Less competitive royalty environment allows higher real financial returns
Still unrecognized investment theme with significant headroom for growth of royalty
segment capitalizations relative to operating segment
Precious Metals Market Capitalizations
Top
5 M
ine
rsTo
p 5
Ro
yalt
y /
Stre
am C
om
pan
ies
(US$bn)
$78
+24bn since 2007
39% of Top 5 Miner Value
$30
OUR ROYALTY BUSINESS – CURRENT STATUS
11
• Altius has become the leading diversified mining royalty company
• Using a combination of exploration based profits retained during previous up-cycle, debt and new equity to fund several acquisitions, both significant scale and diversity have been achieved
• 14 current royalties covering 10 commodities generating approximately $40M annually
• Generally long life portfolio has free option value from inherent potential for mine expansions and extensions
• Market conditions for additional production stage royalty acquisitions have recently deteriorated owing to more readily available competing capital sources for miners
• Development stage royalty opportunities, as part of comprehensive project financing packages, are beginning to emerge however
• Conditions becoming favorable to add several new exploration stage royalties for “free” as part of project generation vend-outs and spin-outs
• Advanced stage projects that we hold royalties over can now attract capital and move forward again (e.g. Gunnison, Telkwa, etc.)
ROYALTY PORTFOLIO GROWTH AND DIVERSITY
12
Cu30%
Ni70%
Cu3%
Ni6%
Electrical coal50%met coal
8%
potash28%
Other5%
Cu18%
Ni5%
Zn5%
Au-Ag6%
Electrical coal38%
met coal5%
potash17%
Other6%
YE April 2014
$3M
YE April 2015
$28M
YE April 2016
$33MYE April 2017 (f)
~$40M
26%
5%
4%
26%
30%
7%2%
WORLD’S MAJOR MINED COMMODITIES (NON-PRECIOUS METAL) Estimated Relative Market Value (2015)
copper nickel
zinc coal
iron ore potash
uranium
• Royalty revenue by commodity profile beginning to emulate the operating portfolios of the major diversified mining companies
Electrical Coal36%
Met Coal4%Potash
11%
Base metals44%
Fe3%
DIVERSIFIED + LONG PORTFOLIO LIFE + INVESTMENT GRADE COUNTERPARTIES
1 All category resources divided by recent average production rates (non 43-101 measure)
Voisey’s Bay Ni-Cu-Co MineLabrador, Canada(20+ year resource life1)
777 Cu-Zn-Au-Ag MineManitoba, Canada(4-6 year resource life1)
Chapada Cu-Au MineBrazil
(30+ year resource life1)
13
BULK
COMMODITIES
DIVERSIFIED + LONG PORTFOLIO LIFE + INVESTMENT GRADE COUNTERPARTIES
1 Mine lives based on the lesser of federal regulation or current mine plans
Genesee Thermal Coal Mine SupplyingGenesee Power PlantAlberta, Canada(38 year resource life1,2)
Paintearth Thermal Coal Mine SupplyingBattle River Power PlantAlberta, Canada(5 year resource life1)
Sheerness Thermal Coal Mine SupplyingSheerness Power PlantAlberta, Canada(7 year resource life1)
Highvale Thermal Coal Mine SupplyingSundance Power PlantAlberta, Canada(12 year resource life1)
Cardinal River Metallurgical Coal MineAlberta, Canada(13 year resource life1)
14
2 Mine life may be further reduced by a recently announced goal of the Alberta gov’t to close all coal plants by 2030
FERTILIZERS
Rocanville Potash MineSaskatchewan, Canada (529 year resource life1)
Cory Potash MineSaskatchewan, Canada (1,453 year resource life1)
Allan Potash MineSaskatchewan, Canada (987 year resource life1)
Patience Lake Potash MineSaskatchewan, Canada (resource life unknown)
Esterhazy Potash MineSaskatchewan, Canada (320 year resource life1)
Vanscoy Potash MineSaskatchewan, Canada (60 year resource life1)
DIVERSIFIED + LONG PORTFOLIO LIFE + INVESTMENT GRADE COUNTERPARTIES
1 All category resources divided by recent average production rates (non 43-101 measure)
15
16
PRE-PRODUCTION STAGE ROYALTY PORTFOLIO
PropertyPrimary
CommodityExplorer/Developer Royalty Basis Status
Voyageur Lands (Michigan) Nickel Bitterroot Resources Ltd. 2% NSR Early-stage exploration; active
Loro en el Hombro, Morsas,
and Culebra projectsCopper Revelo Resources Corp.
0.98% NSR on gold,
0.49% NSR on base
metals
Early-stage exploration; active
Fox River (Manitoba) Copper Callinex Mines LtdOption to acquire 1%
NSREarly-stage exploration; inactive
Herblet Lake (Manitoba) Copper Callinex Mines LtdOption to acquire
1.25% NSREarly-stage exploration; inactive
Island Lake (Manitoba) Copper Callinex Mines LtdOption to acquire 1%
NSREarly-stage exploration; inactive
Pine Lake (Manitoba) Copper Callinex Mines LtdOption to acquire 1%
NSREarly-stage exploration; inactive
Copper Range (Michigan) Copper Bitterroot Resources Ltd.
Option to acquire 1%
NSR held by a third
partyEarly-stage exploration; active
Storm Claim Group (Quebec) NickelNorthern Shield Resources
Inc
Options to acquire 1%
royalty on any one
project in claim group
Early-stage exploration; inactive
Coles Creek (Manitoba) Copper Callinex Mines LtdOption to acquire 2.5%
NSREarly-Stage Exploration; inactive
Moak and Norris Lake
(Manitoba)Copper Callinex Mines Ltd
Option to acquire 1%
NSREarly-stage exploration; inactive
Gurney Gold Claims
(Manitoba)Copper Callinex Mines Ltd
Option to acquire 1%
NSREarly-stage exploration; inactive
Gurney Gold Claims
(Manitoba)Gold Callinex Mines Ltd
Option to acquire 1%
NSREarly-stage exploration; inactive
Shrule Block, Kingscourt
Block, West Cork Block
(Republic of Ireland)
Zinc
Adventus Exploration Ltd.
(Kingscourt JV'd with Teck
Ireland Ltd.)
2% NSR on each Block Exploration
Various Copper-gold-
molybdenum targets
(Alaska)
Copper Millrock and various partners
2% NSR on gold; 1%
NSR on base metalsExploration
Sheerness West - CDP
(Alberta)Thermal Coal
Westmoreland Coal
Company
Tonnes x indexed
multiplierExploration phase
Labrador West - iron ore
(Western Labrador)Iron Rio Tinto Exploration Inc. 3% GSR Exploration; inactive
Astray - iron ore (Western
Labrador)Iron Northern Star Minerals
1% to 4% sliding scale
GSRExploration; inactive
Iron Horse (Western
Labrador)Iron Sokoman Iron Corp
1% GSR; option to
acquire additional 1.1%
GSR
Exploration; inactive
EXPLORATIONPRE-FEASIBILTY/FEASIBILITY
PropertyPrimary
CommodityExplorer/Developer Royalty Basis Status
Gunnison (Arizona) Copper Excelsior Mining Corp1.0% GRR; options to
acquire additional 1.5% Feasibility
Kami - iron ore (Western
Labrador)Iron Alderon Iron Ore Corp 3% GSR Feasibility (on hold)
Telkwa – CDP (British
Columbia)Met Coal Telkwa Coal Limited (TCL)
Up to 1.5% price based
sliding scale GSRPre-feasibility
Central Mineral Belt -
uranium (Central Labrador)Iron Paladin Energy Limited 2% GSR Feasibility (on hold)
PropertyPrimary
CommodityExplorer/Developer Royalty Basis Status
War Baby (Manitoba) Copper HudBay MineralsPossible to earn up to
3% NSR Advanced exploration
Viking - gold (Western
Newfoundland)Gold Anaconda Mining Inc.
2% NSR, plus 1-1.5%
royalties on
surrounding lands
Scoping level
PropertyPrimary
CommodityExplorer/Developer Royalty Basis Status
Golden Shears (Nevada) GoldRenaissance Gold Inc (JV
with Walmer Capital Corp.)1.5% NSR Early-stage exploration
Silicon (Nevada) Gold Renaissance Gold Inc 1.5% NSR Early-stage exploration
Alvito (Portugal) Copper Avrupa Minerals Ltd 1.5% NSR Early-stage exploration
Ely Springs/Jupiter
(Nevada)Gold Kinetic Gold Corp 1.0% NSR Early-stage exploration
Llano del Nogal (Mexico) Copper Evrim Resources Corp1.5% NSR on PM; 1.0%
NSR on BMEarly-stage exploration
Wallbridge Projects
(Ontario)Nickel
Wallbridge Mining Company
Ltd
Option to acquire up to
2% NSREarly-stage exploration
Pine Bay (Manitoba) Copper Callinex Mines LtdOption to acquire 1%
NSREarly-stage exploration; active
ADVANCED EXPLORATION
EXPLORATION
OUR EXPLORATION PORTFOLIO BUILD-UP
18
copper
gold
nickel
zinc
uranium
iron
coal
PROJECT LOCATIONS
potash
Altius greatly increased its land holdings during the down-cycle, emerging as a major global project generator
- 1.8 million hectares held- Copper-gold in Chile- Base and precious metals and bulk commodities in Canada- Nickel-copper in Michigan and NL- Zinc in Ireland and NL- Base metals in Finland- Further royalty and equity exposure to Alaska, Nevada, Arizona, Mexico, Portugal exploration projects
19
• Altius assembles and generates high-quality exploration projects (most aggressively in down-cycles)
• We then convert projects to equities and royalties through spin-outs and vend-outs (most aggressively in up cycles)
• Several such initiatives currently underway including for zinc, gold, and metallurgical coal
PROJECT GENERATION (EXPLORATION) STRATEGY
Down-cycle
Up-cycle
20
• Self-funding (non-royalty revenue based) mechanism established using historical junior equities portfolio, which is currently valued at approximately $15 million after more than $10 million in recent equity sales
• New project spin-out and/or share based vend-outs allow equity portfolio build and replenishment
• In addition to funding itself and creating new royalties, the business generates excess profits that can be used for debt reduction, shareholder capital returns and new royalty acquisitions
PROJECT GENERATION IS SELF FUNDED AND A PROFIT SOURCE
Cumulative Altius Investments: $16 million
Cash Realizations: $223 millionRetained Equities: $13 million
Cumulative Pre-tax Returns: $236 million
Profits: $220 million
Previous* Cycle Performance
* 1998 -2011
INVESTMENT SUMMARY
21
Diversified Royalty Portfolio
14 producing royalties spanning 10 commodities
Royalty revenue grown nearly 15x to ~$40m/a during down-cycle
Low jurisdictional risk
All investment grade counterparties
Reserve life (revenue-weighted) of 30+ years
Expanding and expandable underlying assets providing strong inherent optionality
Project Generation
Low-cost global portfolio build up executed during down-cycle
Exploration portfolio is self-funded independent of royalty revenue
Focus shifting to project spin-outs and vend-outs as junior equity markets improve
Significant pre-production royalty portfolio offers free option value
Poised to create new royalties and generate capital gains as per previous up-cycle track record
Altius offers investors commodity and asset diversification from long life, world class royalty assets
as well as a proven record of profitability and growth through exploration project generation